Emirates receives a $2 billion injection from the Dubai government.
Emirates has received 7.3 billion dirhams ($2 billion) from the Dubai government of address the crisis caused by the coronavirus, according to Bloomberg.
The pandemic has led to a collapse in global air travel, which came to a virtual halt in March, causing the largest airline in the United Arab Emirates to cut thousands of jobs, according to sources gathered by Reuters. That is why Dubai committed to help its flagship airline and says it is preparing new aid. Dubai’s Crown Prince Hamdan bin Mohammed indicated earlier this year that he would provide financial support to the world’s largest long-distance carrier and, as detailed in a Bloomberg bond brochure, the state has already provided an injection of $2 billion over the past five months.
“Any other support will be subject to the needs of the airline and will depend on the impact and duration of the current Covid-19 situation,” according to the document.
The UAE airline has been particularly affected by the pandemic because its business model is built around the largest category of aircraft – Airbus SE A380s and Boeing Co. 777s – that carry passengers between all corners of the world. Long-distance travel is the industry expected to recover most slowly from the crisis, as travelers especially avoid long trips.
Dubai joins the list of governments that have been forced to intervene to save their state airlines. While many borders reopened in early summer, the recovery of airlines has been hampered by subsequent travel restrictions to contain the resurgence.
The UAE resumed some scheduled passenger flights on May 21 after suspending most travel for nearly two months. The airline hopes to increase its network to 80 destinations by September and to serve all destinations by 2021, according to operations director Adel Al Redha in an interview earlier this month.
By Cinco Días
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